HOUSE BILL NO. 44                                                       
       "An  Act  providing that  a  political  use is  not  an                 
  authorized            use  of  charitable  gaming  proceeds;                 
  prohibiting the                   contribution of charitable                 
  gaming proceeds  to candidates  for          certain  public                 
  offices, their campaign organizations, or to       political                 
  groups;  providing that  a political  group is  not a                        
  qualified organization for purposes of  charitable gaming;                   
       relating to what  is a  qualified organization for  the                 
  purpose       of charitable gaming permitting; and providing                 
  for an             effective date."                                          
                                                                               
  Tom Anderson, Legislative Aide to Representative Martin, was                 
  invited to join the committee to testify.                                    
                                                                               
  Senator Phillips MOVED to adopt SCSCSHB 44, version "U".  No                 
  objections being heard, SCSCSHB 44 was ADOPTED.                              
                                                                               
                                                                               
  Mr. Anderson noted the changes to the work draft.  The first                 
  change allows public access to  records on charitable gaming                 
  permits.  He  noted the change on page  3, lines 3-13, which                 
  removed  double  reporting.    Page  5, line  13-15  further                 
  qualifies and defines groups  that cannot receive charitable                 
  game monies. Page  6, lines 22-26, a  political organization                 
  is defined.  The language was provided by legal services, as                 
  a technicality. Finally, Section 14 and 15 allows the public                 
  access  to public record, in the Dept of Revenue, Charitable                 
  Gaming,  regarding  reports  by  permittees, licensees,  and                 
  vendors.                                                                     
                                                                               
  Senator Zharoff asked what charitable gaming has to do  with                 
  political  parties?    Co-chair  Halford explained  that  it                 
  expands  the  definition  of political  groups  in  terms of                 
  campaign contribution prohibition as broad as  possible, but                 
  still  be  a  group.  It  leaves out  individual  candidates                 
  operating on their own. Otherwise,  it broadens the coverage                 
  of the prohibition on contributions.                                         
                                                                               
  Co-chair  Halford  reiterated  the changes  in  the  CS work                 
  draft.  He  stated that the first change proposed  in the CS                 
  is to eliminate duplication.  The  second, is to broaden the                 
  definition of a political organization to include a campaign                 
  committee. The  third, is  to make  all the  reports of  the                 
  Division of Charitable Gaming public record.  This  was done                 
  because when they moved to the  Dept of Revenue, they ceased                 
  being public  records under  another provision.   They  were                 
  public in  Dept of  Commerce and  Economic Development.   He                 
  noted  the last change,  is the definition  of net proceeds,                 
  where they may or may not be distributed.                                    
                                                                               
  Senator  Rieger put  forth  a  technical question  regarding                 
  raffles.  He noted that in the  bill, raffles is referred to                 
  as a form of charitable gaming.   On page 5, it says,  "that                 
  any portion  of  the net  proceeds  of a  charitable  gaming                 
  activity".   Co-chair  Halford clarified  that  raffles  are                 
  separately defined in Section 8, page 5.                                     
                                                                               
  Co-chair Frank MOVED  to adopt  an amendment which  replaces                 
  the language on  page 3, lines  14-17.  He  stated that  the                 
  intent  is that it  is not the  intent to take  money out of                 
  their accounts, but rather, to have  the books examined.  No                 
  objections being heard, the amendment was ADOPTED.                           
                                                                               
  Senator  Sharp  MOVED   to  adopt  SCSCSHB  44   (FIN)  with                 
  individual   recommendations   and  attached   fiscal  note.                 
  Senator Zharoff OBJECTED.  The question is, shall SCSCSHB 44                 
  (FIN) MOVE out of committee  with individual recommendations                 
  and attached fiscal note?  No further objection being heard,                 
  SCSCSHB 44 (FIN) REPORTED OUT of  committee with a "do pass"                 
  and attached fiscal note of $46.5  from the Dept of Revenue.                 
  Co-chairs Halford  and Frank, along  with Senators Phillips,                 
  Sharp  and Rieger  recommended  "do  pass"; Senator  Zharoff                 
                                                                               
                                                                               
  recommended "no recommendation".